Stay or sell?

That 3.4% interest rate is fantastic, but it shouldn’t be the only reason you stay in a home that no longer fits your family. Since you don’t want to become landlords and need the equity for your next purchase, I would first determine what your home could realistically sell for and how much you would net after closing costs. Then have a lender show you the actual monthly payment on the type of home you’d want to move into, so you can compare the numbers side by side. I’ve helped many Columbus area homeowners make this same decision, and sometimes the right financial choice is staying put, while other times the equity they’ve built makes moving much more achievable than they expected. Before giving up that 3.4% rate, I’d want you to know your exact equity, buying power, and new payment so you can make the decision based on real numbers rather than the interest rate alone.

Sell. A family of four in a two bedroom one bath house is not a rate problem, it is a house problem, and the 3.4 percent is costing you less than it feels like. Run the number that actually matters, which is your blended rate, not your current rate. Say you owe $180,000 at 3.4 percent and the next house needs a $320,000 loan at today's rate. You are not giving up 3.4 percent. You are moving from one loan to another, and the honest comparison is the total monthly payment on the new house against the total cost of staying, which for you includes a fourth person in a two bedroom. Put both payments on one sheet of paper. People almost always find the gap is smaller than the story they have been telling themselves, because the 3.4 percent only applies to a small balance. Second thing, and this one has a deadline nobody here mentioned. You bought in 2017 and you have lived there since. Under IRC Section 121 you can exclude up to $250,000 of gain if you are single, $500,000 if married filing jointly, as long as the home was your principal residence for two of the last five years. You clear that easily right now. But that clock is what makes the rent-it-out idea expensive later. If you moved out and rented it for three years and then sold, you would blow past the two-of-five window and your gain becomes taxable. You already said you do not want to be landlords and you need the equity for the next house, so this is really just confirmation, but it is worth knowing that renting is not a free option, it has a tax expiration date attached. Third, the practical sequencing. Since you need the proceeds from this house to buy the next one, talk to a lender about the order of operations before you do anything else. Your realistic choices are sell first and rent briefly, or buy with a contingency, or use a bridge product. Each has a real cost and your agent and lender can price all three in an afternoon. What I would actually do in your shoes: get a lender to quote your next purchase at today's rate, get an agent to give you a net sheet on this house, and look at those two pieces of paper together before the baby arrives, not after. Everything gets harder with a newborn in the house. I am Zoltan Peresztegi, a real estate professional in Los Angeles and the South Bay, and I am not a CPA, so confirm the Section 121 piece with one. But the rate is not the reason to stay. The rate is the reason people talk themselves into staying in a house that stopped working two kids ago. Zoltan

Based on what you've shared, it sounds like your family's needs have outgrown the home, and that is often a better reason to move than trying to hold onto a low interest rate. A 3.4% mortgage is an excellent rate, but if a two bedroom, one bathroom home no longer works for a growing family of four, staying solely because of the rate may not be the best long term decision. Since you do not want to become landlords and you need the equity from your current home to purchase the next one, selling may be the most practical option. While your new mortgage will likely have a higher interest rate, you'll also be buying a home that better fits your family's needs and lifestyle. The key is making sure the monthly payment on your next home fits comfortably within your budget. Before making a decision, ask a local real estate agent to prepare a net proceeds estimate so you know approximately how much equity you'll have available after paying off your mortgage and selling expenses. You should also speak with a lender to determine what price range you can comfortably afford based on today's interest rates. A low mortgage rate is valuable, but it is only one piece of the puzzle. If your current home no longer meets your family's needs and you have the financial ability to move, it may make more sense to focus on finding the right home for the next stage of your life rather than letting the interest rate alone dictate your decision.

A 3.4% mortgage is certainly valuable, but it shouldn't be the only factor driving your decision. Based on what you've shared, you're a growing family that started in a home intended to be a starter home. If you're already feeling cramped with a family of three and expecting a fourth member, it's reasonable to evaluate whether the home still fits your needs. A few questions I'd consider: • Can the current home comfortably serve your family for another 2–5 years? • How much equity have you built since purchasing in 2017? • What would your monthly payment look like on the next home? • Are suitable larger homes available within your budget? Since you don't want to be landlords and would need the equity from your current home for the next purchase, keeping the property as a rental doesn't sound like it aligns with your goals. Many homeowners today feel "locked in" by low interest rates, but housing decisions are ultimately lifestyle decisions as well. If the home no longer works for your family's needs, staying solely because of the interest rate may not be the best long-term solution. I would recommend speaking with a local real estate professional and lender to compare: • Your estimated net proceeds if you sell. • Your buying power today. • The monthly cost difference between staying and moving. Once you see the actual numbers, the decision often becomes much clearer. A great interest rate is valuable, but so is having a home that fits your family's needs and future plans.

That 3.4 percent rate is valuable, so I would not ignore it. But a low interest rate by itself is not always a reason to stay in a house that no longer fits your life. Since you do not want to be landlords, the real question is whether selling gives you enough money to make the next move comfortably. I would get two numbers before deciding. First, what would your home realistically sell for today and what would you net after the mortgage payoff, commissions, closing costs, and moving expenses? Second, what would the next home actually cost each month at today’s rates? That comparison will tell you more than the interest rate alone. If the house is too small, you are ready to move, and the sale gives you enough equity for the next home, selling may make sense even if the new rate is higher. If the numbers are tight, you may decide to stay a little longer and keep building equity. You are not wrong to want to move. Just make sure the next payment and the cash left after closing are both comfortable before you list. Austin Moore Austin Moore & Company Real Estate Realtor in Longview, Texas

You’re really choosing between comfort now vs cost later. That 3.4% rate is great, but it doesn’t fix the fact that you’re outgrowing a 2 bed 1 bath with a growing family. Staying just for the rate can get uncomfortable fast. Here’s the simple way to look at it: If you can afford the next home and still feel okay with the higher payment, it’s reasonable to move. You’ll use your equity and solve the space issue. If the new payment stretches you too much, it may be worth staying a bit longer and building more cushion. Since you don’t want to be landlords, that simplifies it. It’s really just sell vs stay. At that point, ask yourself this. Are you staying because it still works, or just because the rate is good? If it’s only the rate, most people in your situation end up moving anyway.

that rate is hard to come by these days! Congratulations. Your home seems small but I am sure your payment is comfortable. If you choose to sell I would look for your forever home. But Being a landlord in Columbus at a rate of 3.4% you could probably get a great monthly rental income to offset the monthly payment AND give you some retirement income in the far future!

More details would be required to properly answer this question; such as your current financial situation, comfort level, etc.

If you accumulated equity, can handle the payment using your sales proceeds go for it

This is one of those situations where there isn’t a perfect answer—just the one that fits your life right now. A 3.4% rate is great, no question. But what I see a lot is people getting stuck on the rate and ignoring the bigger picture… your home doesn’t fit your life anymore. Going from a family of 3 to 4 in a 2 bed, 1 bath is a real change. At some point, space and functionality start to matter more than the interest rate. Since you already know you don’t want to be landlords and you need the equity for the next home, keeping it as a rental probably isn’t the right fit anyway. So the decision really becomes: Is staying in a home that no longer works worth keeping the rate? Or is it time to move into something that actually fits your next stage? What I usually walk people through in this situation is less about “should you sell” and more about “what does the move actually look like?” How much equity do you realistically have What that turns into for your next purchase How to time selling and buying so you’re not stuck in between Because that’s usually the real stress point—not the rate. I actually put together a breakdown of how selling and buying at the same time works (and the different ways to structure it), which might help you think through your options a little more clearly: https://pillarrealestate.com/blog/can-i-sell-my-home-and-buy-another-one-at-the-same-time-in-san-luis-obispo-county At the end of the day, a low rate is great—but it shouldn’t keep you stuck in a house that doesn’t fit your life anymore.

Check what your equity is and what your local market looks like. If the market is moving you may be able to list your home and get time to find your new home as one of the conditions of the sale. Reach out now to an agent and make sure if you decide to sell. that you aren't spending money you won't recoup. You've outgrown your home. If you can make the numbers work it might be good to plan before the number 4 show up and your current home gets even smaller. 3.4 interest rates are not likely to return. That was a once in a generation time period. Sounds like you have a good starter home and these are the homes that are in high demand. Best wishes.

Your 3.4% rate is an incredible asset — and it makes sense to hesitate before giving that up. But interest rate alone shouldn’t drive the entire decision. The real question is whether your current home still fits your life. Rates matter, but so does quality of life. If your home no longer supports your family’s needs, that’s a strong indicator it’s time to move. Even with a higher rate, your equity may put you in a strong position. Let’s look at the numbers so you can make a confident, informed decision. Let me put together a full equity and purchase‑power analysis for you. No pressure — just information. Once you see the full picture, you’ll know exactly what the right move is for your family.

This is the fundamental dilemma facing the housing market. Who trades out of 3%-4% interest rates to pay 6%-7% interest rates? "Death, Divorce, Relocation, family shrinking or growing are the key reasons folks have to move. If you don't fit into any of these aspects, then one faces your "situation". "It is a question of math or the NEED for change that will govern your decision making" In my himble opinion"..

“That's actually a really good position to be in. A 3.4% rate is amazing, so it makes sense you’d want to think carefully before giving that up. The key question is really how much equity you’ve built and whether it puts you in a strong position for your next home. Since you don’t want to be landlords and you need the funds for the next purchase, selling may make the most sense—but we’d want to look at the numbers first. If your home has appreciated the way many homes have, you may have enough equity to comfortably move into something that better fits your family of four. What I’d suggest is I put together a quick value estimate and show you what selling might look like—what you’d likely net and what price range that puts you in for your next home. That way you can decide if moving now makes sense.”You may have enought down that the interest rate may not big a big issue. ( I honestly did this 3 years ago)

You must decide if moving is worth it considering the interest rates today on your new a home. Some builders will buy the interest rate down to 4%, so consider a new home. 3.4% is very attractive. Even though you don't want to be a landlord, consider hiring a property manager to deal with renting out your house. 20 years from now. You'll be glad you kept that house. If you need money from your equity in your current house. Consider getting down payment assistance and have the seller pick up your closing costs. Many sellers will. If you're a veteran, use your VA zero down benefits.